Bitcoin acts more like a tech startup stock than digital gold. Investors can get huge returns from this if everything works, but they can also lose everything if the crypto-asset fails. That is the conclusion of an August 10th report from digital asset manager CoinShares entitled A Little Bitcoin Goes a Long Way. In it, authors James Butterfill and Christopher Bendiksen argue that the fact that Bitcoin (BTC) “began its life with a price of zero” gave it an excellent reputation.”If it realizes its potential, the value could be immense,” the report said.
“At the same time, there is a non-zero chance that it will fail completely and the value of Bitcoin will fall close to zero.”
Gradual maturity to become a store of value
Acting like a tech stock isn’t a bad thing. Tech stocks have seen tremendous gains since the crypto slump in March. The price of Amazon rose 70.7 percent to $ 3,170, Apple rose 63.3 percent to $ 450, Facebook rose 54.5 percent to $ 263, and Google rose 23.6 percent to $ 1,496 -Dollar.Before that, there was a volatile period during which Bitcoin tested the $ 12,000 mark for the first time since 2019.”Bitcoin is an asset that is still in its infancy,” says the Coinshares report. “Bitcoin is gradually maturing and proving its resilience. The risk of failure is moving further and further from zero. Therefore, we believe that investors will begin to treat it differently and its macroeconomic behavior will follow suit.